Technical analysis of USD/JPY for January 21, 2014
January 22, 2014 5:15 am
Overview:
USD/JPY is expected to consolidate after hitting a four-day low of 103.87 Monday. It is supported by the JPY sales on rebounding yen crosses after stronger-than-expected China 4Q GDP data, the demand from Japan importers and ultra-loose Bank of Japan’s monetary policy. But USD/JPY upside is limited by broadly weaker dollar undertone (ICE spot dollar index last 81.03 versus 81.21 early Monday) and still-subdued investor risk mood as the European stocks edged lower on Monday (Stoxx Europe 600 index slipped 0.1% to end at 335.50) and Japan exporter sales. Daily chart is mixed as MACD is bearish, but stochastics is neutral.
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 104.75 and the second target at 105.05 in mind. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 103.8.A breach of this target will move the pair further downwards and one may expect the second target at 103.5. The pivot point stands at 104.15.
Resistance levels:
104.75
105.05
105.45
Support levels:
103.8
103.5
103.2
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/JPY is expected to consolidate after hitting a four-day low of 103.87 Monday. It is supported by the JPY sales on rebounding yen crosses after stronger-than-expected China 4Q GDP data, the demand from Japan importers and ultra-loose Bank of Japan’s monetary policy. But USD/JPY upside is limited by broadly weaker dollar undertone (ICE spot dollar index last 81.03 versus 81.21 early Monday) and still-subdued investor risk mood as the European stocks edged lower on Monday (Stoxx Europe 600 index slipped 0.1% to end at 335.50) and Japan exporter sales. Daily chart is mixed as MACD is bearish, but stochastics is neutral.
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 104.75 and the second target at 105.05 in mind. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 103.8.A breach of this target will move the pair further downwards and one may expect the second target at 103.5. The pivot point stands at 104.15.
Resistance levels:
104.75
105.05
105.45
Support levels:
103.8
103.5
103.2
The material has been provided by InstaForex Company – www.instaforex.com
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